New York City’s notorious slumlord, Daniel Ohebshalom, is facing numerous charges for neglecting his rent-controlled apartments, forcing tenants to vacate so he can profit from renting or selling at higher prices. Ohebshalom and his four companies were indicted on May 1 by the Manhattan District Attorney for a range of offenses.
Manhattan District Attorney Alvin L. Bragg, Jr. and Jocelyn E. Strauber, Commissioner of the NYC Department of Investigation, jointly announced that Ohebshalom (also known as Daniel Shalom) and his companies Keystone Management, Liberty Ventures, Highpoint Associates XII, and Belmont Ventures are facing charges including felony harassment of rent-controlled apartment tenants, felony submission of false documents, and misdemeanor endangering the welfare of children. Ohebshalom alone is facing a total of 40 charges.
According to the indictment, Ohebshalom owns five properties in Manhattan, including 331 East 14th Street, 410 West 46th Street, 412 West 46th Street, 705 West 170th Street, and 709 West 170th Street. Ohebshalom allowed these rent-controlled buildings to deteriorate intentionally, strategically pressuring tenants to leave in order to re-rent or sell them for substantial profits. These rundown buildings were found to have serious violations and hazardous conditions, such as lack of heat and hot water in winter, ongoing leaks leading to ceiling collapses that injured tenants, including a child, and front doors that wouldn’t lock or lacked other safety measures. Additionally, Ohebshalom used employees of his partners to act as property managers, signing documents that should have been submitted to the NYC Department of Housing Preservation and Development (HPD) to evade liability for violations.
The indictment also reveals that through these methods of forced displacement, Ohebshalom was able to remove the buildings from rent control, renovate them, and then rent them out at higher prices or sell the emptied properties for profit. For instance, after a fire at 412 West 46th Street in 2015, the building remained vacant and was eventually sold together with 410 West 46th Street for $11.7 million.
Ohebshalom’s notorious reputation precedes him, having been listed as the top offender on the “Worst Landlord Watchlist” for the past two years. He has faced numerous violations and penalties from the NYC government, totaling $4.2 million in fines last year alone. For the continuous 700 violations at the two Manhattan apartment buildings on West 170th Street, he was arrested in March and fined $3 million, with a possible 60-day detention until the violations are rectified. However, since he resides in California, he remains beyond the reach of authorities. This time, he is finally being prosecuted on multiple felony and misdemeanor charges.
At the press conference held that day, District Attorney Bragg also encouraged affected tenants to report to the Housing and Tenant Protection Division of the Manhattan District Attorney’s Office by calling 212-335-3300 or emailing [email protected].